Old National Bancorp (ONB)

History and Background

Old National Bancorp, founded in 1893 in Evansville, Indiana, began as a local savings and loan association. It has grown organically and through strategic acquisitions, expanding its geographic footprint and service offerings. Significant milestones include its transition to a bank holding company, listing on the NYSE, and numerous successful mergers that have broadened its reach across the Midwest.

Core Business Areas

• Commercial Banking: Provides a full range of lending and deposit services to businesses, including small and medium-sized enterprises, as well as larger commercial clients. This includes commercial real estate loans, working capital lines of credit, and treasury management services.
• Consumer Banking: Offers a comprehensive suite of retail banking products such as checking and savings accounts, mortgages, auto loans, and personal loans to individuals and families.
• Wealth Management: Includes investment services, trust services, estate planning, and financial advisory for individuals, families, and institutions. This segment aims to provide comprehensive financial planning and asset management.
• Insurance Services: Through its subsidiary, Old National Insurance, the company offers a range of insurance products including property and casualty, life, and employee benefits for commercial and individual clients.

Leadership and Structure

Old National Bancorp is led by a Board of Directors and a senior executive team. The company operates with a divisional structure that aligns with its core business areas and geographic regions, allowing for focused strategies and execution.

Key Offerings

• Commercial Loans: Includes term loans, lines of credit, and commercial real estate financing. Competitors include large national banks and regional banks. Specific market share data for this product is not publicly disclosed.
• Consumer Deposits (Checking & Savings): Offers various deposit accounts for individuals and businesses. Competitors are numerous, ranging from large national banks to credit unions. Specific market share data for this product is not publicly disclosed.
• Mortgage Lending: Provides residential mortgage products. Key competitors include national mortgage lenders, other banks, and credit unions. Specific market share data for this product is not publicly disclosed.
• Wealth Management Services: Includes investment advisory, trust, and retirement planning. Competitors are broad, encompassing independent financial advisors, other banks' wealth divisions, and dedicated investment firms. Specific market share data for this product is not publicly disclosed.

Industry Overview

The banking industry in the US is mature and highly competitive, characterized by ongoing consolidation, technological advancements (fintech), evolving regulatory landscapes, and interest rate sensitivity. Regional banks like Old National Bancorp often focus on community relationships and personalized service to differentiate themselves from larger national players.

Positioning

Old National Bancorp is positioned as a super-community bank, leveraging its strong regional presence in the Midwest. Its competitive advantages lie in its established customer relationships, tailored financial solutions, and commitment to community involvement. The bank aims to combine the personalized service of a community bank with the capabilities of a larger financial institution.

Total Addressable Market (TAM)

The total addressable market for banking services in the US is substantial, encompassing trillions of dollars in deposits and loans. Old National Bancorp's TAM is focused on its operational footprint, primarily the Midwest, where it competes for a share of commercial, consumer, and wealth management needs within its specific markets. Its positioning is to capture a significant portion of this regional TAM through organic growth and strategic acquisitions.

Key Competitors

• Fifth Third Bancorp (FITB)
• KeyCorp (KEY)
• Huntington Bancshares Incorporated (HBAN)
• Comerica Incorporated (CMA)

Competitive Landscape

Old National Bancorp competes in a market with larger national banks that have greater brand recognition and resources, as well as numerous smaller community banks and credit unions. ONB's advantage lies in its ability to offer a broader range of services than smaller institutions while maintaining a more personal touch and regional focus than super-regional or national banks.

First Midwest Bancorp

• Year: 2022
• Acquisition Price (USD millions): 2200
• Strategic Rationale: The acquisition of First Midwest Bancorp significantly expanded Old National's geographic footprint into attractive markets in Illinois, Wisconsin, and Michigan, creating a larger, more diversified, and scale-advantaged banking franchise with enhanced cross-selling opportunities and operational efficiencies.

Historical Growth: Old National Bancorp has demonstrated historical growth through a combination of organic expansion and strategic acquisitions. This has led to an increase in its asset base, loan portfolios, and geographic reach across the Midwest. The company has a proven track record of integrating acquired entities successfully.

Future Projections: Analyst estimates for future growth are based on economic forecasts, industry trends, and the company's strategic initiatives. Projections typically focus on revenue growth, earnings per share (EPS) expansion, and potential for further market share gains. Specific projections can be found in analyst reports and company guidance.

Recent Initiatives: Recent strategic initiatives likely include further geographic expansion through acquisitions, enhancements to digital banking platforms, optimization of its branch network, and a continued focus on expanding its wealth management and commercial banking segments. The integration of recent acquisitions remains a key initiative.

Old National Bancorp is a well-established regional bank demonstrating consistent growth through a combination of organic strategies and successful acquisitions, most notably First Midwest Bancorp. Its diversified business model, strong community focus, and expanding Midwest presence are key strengths. However, it faces intense competition and is susceptible to regional economic fluctuations and interest rate changes, requiring continued focus on digital innovation and efficient integration of acquisitions.

Data Sources:

• Old National Bancorp Investor Relations
• U.S. Securities and Exchange Commission (SEC) filings (10-K, 10-Q)
• Financial data aggregators (e.g., Bloomberg, Refinitiv, Yahoo Finance)
• Industry analysis reports

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Market share data is estimated and based on publicly available information and may not be precise. Historical financial performance is not indicative of future results. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions.